legal ground
Article 28 of the Enterprise Income Tax Law of People's Republic of China (PRC)
Small and low-profit enterprises that meet the requirements shall be subject to enterprise income tax at a reduced rate of 20%. High-tech enterprises that need special support from the state shall be subject to enterprise income tax at a reduced rate of 15%.
Announcement of State Taxation Administration of The People's Republic of China on Relevant Matters Concerning the Implementation of Preferential Income Tax Policies to Support Small-scale Low-profit Enterprises and Individual Industrial and Commercial Households I. Relevant Matters Concerning the Policy of Reducing Income Tax by Half for Small-scale Low-profit Enterprises.
(1) The annual taxable income of small and low-profit enterprises does not exceed 6,543.8+0,000 yuan, and it is included in the taxable income at the reduced tax rate of 654.38+02.5%, and the enterprise income tax is paid at the reduced tax rate of 20%. (II) The specific collection and management issues involved in the above policies enjoyed by small-scale low-profit enterprises shall be implemented in accordance with the relevant provisions of the Announcement of State Taxation Administration of The People's Republic of China on Relevant Issues Concerning the Implementation of Inclusive Income Tax Reduction and Exemption Policies for Small-scale Low-profit Enterprises. Matters related to the policy of halving the individual income tax of individual industrial and commercial households (1) On the basis of the current preferential policies, the individual income tax will be halved for the part where the annual taxable income of individual industrial and commercial households does not exceed 6,543,800 yuan. Individual industrial and commercial households can enjoy it no matter what collection method is adopted.
(2) Individual industrial and commercial households can enjoy it when paying taxes in advance, and their annual taxable income will be judged temporarily according to the situation at the end of the reporting period, and the annual final settlement will be calculated on an annual basis, with overpayment and underpayment. If individual industrial and commercial households obtain business income from more than two places, they need to combine the annual taxable income of individual industrial and commercial households when handling the annual summary tax return, recalculate the tax reduction and exemption, and refund more and make up less.
(3) Individual industrial and commercial households shall calculate the tax relief according to the following method: tax relief = (tax payable by individual industrial and commercial households with taxable income not exceeding 654.38+RMB 00,000-tax relief by other policies × taxable income of individual industrial and commercial households with taxable income not exceeding 654.38+RMB 00,000 × (654.38 +0-50%) (4). For individual industrial and commercial households declared through the electronic tax bureau, the tax authorities will provide preferential policies for tax reduction and exemption and pre-filling services for statements. For individual industrial and commercial households that have a regular quota for simple declaration, the tax authorities shall pay taxes according to the reduced tax amount. Three. Relevant Matters Concerning Cancellation of Prepayment of Personal Income Tax on Freight Transportation Invoices Individual industrial and commercial households, sole proprietorship enterprises, partnerships and individuals will no longer prepay personal income tax when issuing VAT invoices for freight transportation. Owners of individual industrial and commercial households, investors of sole proprietorship enterprises, individual partners of partnership enterprises and other individuals engaged in cargo transportation business activities shall declare and pay personal income tax on their business income according to law.